I Moved my Money Out of the Stock Market-Laurence Kotlikoff

By Greg Hunter’s USAWatchdog.comKotlikoff 

In January, Economist Dr. Laurence Kotlikoff said he was “worried” that the economy was reaching “a real threatening point.”  The Cyprus banking crisis hit the Globe last week.  Now, when asked if he was still “worried,” he replied, “This morning, I moved my money out of the stock market  . . . because I’m worried about Cyprus.”  Dr. Kotlikoff explained his dire concern by saying, “The rich people are already running on these banks.  That’s been going on for a year. . . . The everyday working people could start visibly running on these banks, and that could spread like wildfire throughout Southern Europe and Northern Europe and into the U.S. because we have a banking system that’s built to fail.”   Dr. Kotlikoff also says, “It’s going to happen in the form of a crash in the bond market.  Interest rates are going to skyrocket, and we’re probably going to have high inflation because the government is printing money out the wazoo.”  Join Greg Hunter as he goes One-on-One with Economics Professor Laurence Kotlikoff of Boston University. 

Comments
  1. Rev. William W. Joslin

    I’ve been waiting for this interview Greg! Very informative. I have a question, what do you think people should/could do to help prepare themselves and their family for what is coming? Thanks!

    • Greg

      Rev,
      Get out of debt or do not take any more on. Stock up on everything–food, silver, lead, water and believe it or not you need to have some cash. Look at those people in Cyprus. In the U.S. $10.8 trillion in deposits are insured by just $33 billion. What could go wrong?

      • Rev. William W. Joslin

        What indeed… Thanks Greg! Very good advice. I’d also suggest anyone that can, should get out of the big cities. We’re in for a wild ride. I’ll be praying for the best, and preparing for the worst.

      • SpeakYourMind

        i thought i heard you say in this interview that you were not stocking up on food etc.

      • Kyle McKenna

        I got out of debt in 2007 and it was one of the worst mistakes of my financial life!

        If I’d taken on more debt instead, I could have gotten a mortgage bailout to the tune of a few hundred thousand dollars. Not to mention that in most states you can load up on debt, declare bankruptcy, and still keep every single thing you have.

        • Greg

          You did the right thing and the ethical thing. Karma my friend, karma.

          • hookshot

            Yes, he did what was right and ethical. As far as karma-there’s no such thing. Nature doesn’t care if you are good or bad. It attacks us at random. Sorry all you god fearing, superstitious people out there.

  2. justin king

    Spain is a slow-mo train wreck, Cypriots and Greeks constantly travel back and forth between Nicosia and Athens with the same mindset, ,Bernanke is using QE as a “playing for time” device with a Congress that is hopeless, and China is constantly opaque. — You combine these economic fears with modern internet speed and it feels like the world is entering “The Quickening”, which has been talked about in mystical circles for the last few decades.= Everyone has their finger on a button.

  3. justin king

    Kotlikoff’s CLASH OF GENERATIONS book on Kindle will give you links to 16 pages of some of the best books available on this crisis./// On Top Stories this week- Sinclair,Farage,Roberts is a must.-JK

  4. jc davis

    The seizure of larger deposits may spark tensions with Russia, the source of an estimated $31 billion in holdings in Cypriot banks, according to Moody’s Investors Service. A Cypriot mission to Moscow last week failed to yield an alternative to the European-sponsored bailout. link:
    http://www.bloomberg.com/news/2013-03-25/cyprus-to-chop-banking-system-to-win-aid-avoid-default.html

  5. SpeakYourMind

    I would like to know how Silver and Gold go down after people get their money stolen in banks. UNBELIEVABLE!!

    • Troy

      Short; Man-nip-ulation ;)

  6. Nick

    STUNNING !!! THAT WAS A STUNNING INTERVIEW GREG !!
    CONGRATULATION.
    YOU’RE A GOOD MAN GREG, NICE TALKING TO YOU AGAIN.

    REGARDS

    NICK CANADA

    • Greg

      Thank you Nick and Nathan for the kind words and warning.

  7. nathan

    This is off the subject but Max Keisers website has been hacked (about 24 hours now) so beware . I know you get hit all the time yourself . Keep up the great work Greg .

    Nathan R

  8. Robert

    Greg,
    At the beginning of the video you said you don’t store food or have weapons. I have an immense amount of respect for you and greatly appreciate the service you provide for your viewers. I wish you would reconsider your decision about food and weapons for your long term planning.

    • Greg

      Robert,
      Good point. Thank you. Sometimes I am too busy with this site to take care of myself.

      • Rev. William W. Joslin

        But, you do have lots of connections. Networking is very important. And you’ve certainly done that. :)

        • Rev. William W. Joslin

          All you need Greg is a double barrel shotgun and a tank of gas. That should get you anywhere you need to go. ;)

      • Larry W. Bryant

        == That Swooshing Sound We Hear Is a Single Humungous Domino Making Its Way Across the Atlantic to the Shores of Ellis Island . . . ==

        . . . whereby many of us soon will be rendered as destitute as the island’s initial refugees. Who knew!? — Larry W. Bryant (25 Mar 13)

      • Troy

        All end with the same result

        3 Min no air
        3 Days no water
        3 Weeks no food

        A few luxury items as good or better than gold.

        Alcohol
        Gigs
        Toilet Paper

        • Kyle McKenna

          QUOTE: “A few luxury items as good or better than gold.

          Alcohol Gigs Toilet Paper”

          What are gigs??? You mean musical performances?

          I think growing your own food is better.

          • Troy

            Typo sorry; Cigs, Fags, Tobacco.

            Is food a luxury item ;)? and was covered right after water.

            I concur with your analysis!

          • ncdirtdigger

            Typo perhaps? Cigs, as in cigarettes.

  9. LeRoy Matthews

    Study my Letter on Diana@Philosophyinaction.com.
    I wrote to Professor Kotlikoff some time ago. He’s NUTS.
    Stop referring to the politicians as “US”. WE aren’t THEM- THEY aren’t US. It’s the politicans/ the so-called “governments”, etc., that have Severe Budget Problems- not US/ the taxpayers/ the banks/ the Economy, etc. The so-called “federal government”, for example, is not only Bankrupt, & Head- Over- Heels In Debt, It’s Operating Way In The Red, & Has A Huge, & Increasing, Budget Deficit. There’s virtually zero $ for anything whatsoever. Their “securities” are virtually worthless. What THAT has to do with pulling $ out of banks, stock markets, etc., I have no idea.
    The idea that they are technically already in default also doesn’t seem to make sense. The so-called “Fed”, their “Trust Funds”, etc., have been buying their Fake, Worthless “securities” all along. So?
    (To find my Letter, try searching for Crazy Inbox.)

    • Greg

      I guess it wouldn’t make any difference if we all used another currency to buy things with but we don’t. We use Federal Reserve Notes and that means big inflation and very big truoble. Dr. Kotlikoff is NOT nuts.

      • Kyle McKenna

        For inflation to take hold there must be a dramatic increase in demand. We are still in a deflationary spiral; it’s just been masked by government intervention.

        Groceries and emergency medical services always retain pricing power because people need them to live.

      • LeRoy Matthews

        Once Again: Study my Letter on Diana@ Philosophyinaction.com.
        What’s the point of brushing off vitally important true information because you’ve listened to, & believed, a crazy liar like Kotlikoff-who is apparently a Professor, not a Doctor?
        As I’ve tried to point out before, Money is just that-Money. The fact that the Fed prints it is moot. Talking about money having big problems like inflation doesn’t make sense. Inflation in the past has already happened. Inflation in the future hasn’t happened yet, & may never happen, so why worry about it? Virtually worthless so-called “US Government”/ “US Treasury securities”, on the other hand are just that. THEY’RE the problem, in that sense, not Money. Nobody in their right mind would believe that if the politicians have sold lots of Fake, Worthless “securities”, people should anticipate an economic collapse, take their $ out of Banks, stock markets, Economies, etc. Banks, stock markets, economies, etc., AREN’T set up to fail, at all. “Governments”, in that sense, are.
        (To find my Letter, try searching for Crazy Inbox.)

  10. George

    I truly think that the people have too much “Cognitive Dissonance”, and refuse to see what is in front of them. They believe with all their hearts and minds that “It can’t and won’t happen here”.

    Why people have not taken everything out of their bank(s) with the exception of just the amount of funds to pay the rent/mortgage and bills each month is beyond my comprehension.

    Look at the Sandy Storm fools (they are not victims). They were told for a week+ to prepare, move, get ready for a disaster. What did they do? Watched TV and sat on their behinds. What happened? They are now still to this day waiting in lines for things they should have gathered and prepared for.

    We watch as they take and take and take and take, yet most do nothing and think that tomorrow will be better. Those days are gone my friends.
    There is no coming back from the largest debt in human history, the largest amount of derivative exposure the world has every seen in history, it’s over, end game! The banks have gone as far as they can, and the only thing left is collapse. Either controlled, or full on collapse.

    GET YOUR MONEY OUT OF EVERY BANK, BE IT EUROPE OR AMERICA!!

    Stop being a tool, and use your God given brain for something other than wearing a hat.

    I apologize for the rant, but the time is NOW to act!

    • Kyle McKenna

      QUOTE: “Look at the Sandy Storm fools (they are not victims). They were told for a week+ to prepare, move, get ready for a disaster. What did they do? Watched TV and sat on their behinds. What happened? They are now still to this day waiting in lines for things they should have gathered and prepared for.”

      No, they got their politicians to rain down $80 Billion on them as though no one was insured. Guess who pays? We do.

  11. john

    what do you do with your money,? if your out of stock market, banks are unsafe, thanks

    • jc davis

      John. I took my money and bought 20 ac track of land away from the city. with a spring creek on the property. I bought food from efoodsdirect.com. Then I bought silver, guns,ect… things I can sink my teeth into. If no problems happen these things will always be of value. unlike a highly inflated dollar.

    • C6

      When you pull your funds out of the banks the safest place to put it is in 1oz silver bullion rounds.

  12. Mike H

    Just coming on board after hearing your Coast to Coast interview with John B Wells…terrific!
    USAWatchdog is like gold…soon to be priceless
    So important to get real news these days, not the corporate cable and network tripe.
    In today’s fiscal lunacy you have to trust your instincts and go with what you believe…get your wealth out of paper and into tangible assets.
    Keep up the good work and get some damn food stored!!!

    • Greg

      Thank you Mike and Larry for weighing in.

  13. frosty

    Greg,

    Recall the anecdotal story of the frog that will willingly remain in a pot of water and allow itself to be slowly cooked to death so long as the water temperature is increased slowly enough to keep the frog from becoming alarmed and jumping out. This is a great allegory which could represents us, the frog, surviving in the current economic system, the pot of heated water.

    Our system, in which money is issued as debt with interest tacked on, is designed to boil us in a bath of ever increasing debt until we are either impoverished to the extent that we can no longer tolerate the situation or until we are economically destroyed and the lender owns all we ever had. Like the frog in the water, the only unknown factor is how long we, the frogs, will continue to tolerate his increasingly dangerous situation. Ultimately, it comes down to a confidence game.

    What Mr. Kotlikoff is describing, with his references to Jimmy Stewart’s role in “Its a Wonderful Life”, and to his own role in trying to awaken us to the reality of the dire situation we are in, and to the soft lies being fed to us by the politicians and bankers, is not economics at all. Economics, history and common sense all point to the inevitable and total destruction of the personal and national wealth of all who ever participated for long in debt driven systems. It requires no Harvard degree to understand what a five year old could easily ascertain if given an honest, five minute explanation of how the perpetual debt system is designed to work.

    Mr. Kotlikoff is simply describing the application of various techniques being used in the confidence game to persuade the masses either to jump out of the pot or to stay in it. His recommendation, based simple and hard economic facts is to jump out of the pot as he and others have already done. The global bankers, along with the political and media prostitutes of America want us to remain in the pot for as long it takes to bring the con-game to the desired end. Their technique is based on their ability to sustain a delusion based on our blind faith and unshakable confidence in them as “our leaders”.

    It seems as if the arrogant snakes we call “our leaders” believe the American people have undergone a process of spiritual degradation so severe in scope that the frogs have now become our closest related species. I hope they are wrong.

    Thanks to sites like yours and others in the alternative media, people are becoming more perceptive and understanding of the corruption and manipulation inherent in the current events that unfold. Even now, as our human forefathers did, some with courage are beginning to stand up and take the ball back into our own hands. This may lead to violence if the powers that be resist the trend but, relative to the alternative of being enslaved by tyrants who hold us on a level next to that of a frog, it’s a good sign.

    • Greg

      Always good Frosty!

      • Chip

        I concur with Frosty. I appreciate what you do here Greg…

  14. tsuki

    Another economist that follows the herd. It is all social security and medicare, all the time. Money printing, check.

    But, don’t, absolutely do.not talk about the elephant in the room. Do not say one word about supporting the largest socialized economy in the world, the US Military.

    Take just one line item, the F35. Ran 64% overbudget for development at around one trillion dollars. Print some more money. We are going to buy 200 of theses things at 300 million a piece. That will teach Iran.

    Or head over to Okinawa where, at my last count, we had over 30 bases and stations. No potholes in those roads. Lawns are manicured. Base theater, bowling alley, rec center, nightclubs, fast food, jewelry stores, liquor stores, grocery stores, free medical, dental and eyeglasses, just like home used to be. And the status of forces agreement. No problem with money, just print some more.

    Next stop off in Okaloosa County where 73% of the economy is generated by the military installations, and wages and benefits are equal to 168% of what a working Floridian makes. No problem. Print, Print, Print.

    I can keep going. But what I want is an economist that will put it ALL on the Table. Every sacred cow. Military Industrial Complex, Prison Industrial Complex, Educational Industrial Complex, Surveillance Industrial Complex, Massive Federal and State employment, Banks, Entitlements…ALL.OF.IT.

    They need to stop cherry picking Social Security for an easy answer.

    • old nurse

      Most intelligent comments I’ve read on this site. Thanks, Tsuki.

    • Kyle McKenna

      GREAT POST!

      • jc davis

        Tsuki That is too much truth to be able to say it all. Its post like yours that make me glad I visit this site. M.I.C. is the number one threat to our country. Above the fed. cool post!

    • Joanna

      Wow! Great post! I not only love this site for Greg and the great guest he has on but also because of the intellectuals that follow this site and comment! tsuki, you are spot on with this one! Thank you!

  15. Jake

    Greg,

    How can you give advice to store food and water, ect and not actually do so for yourself. I agree with all you write but just curious why you are waiting to practice what we teach.

    Thanks for the article!

  16. Troy

    Greg,

    Yet another informative interview.

    U Got to Luv Accounting!

    Banks
    PoliTicks
    &Esquires

    Where would we be without them ;)?
    Hope the Money Junkies save us soon ;)

  17. Mountainaires

    Great interview! Thanks!

  18. Steve

    Greg,

    I agree with Robert. Please consider devoting a small area of your home (a closet or under a bed) to food storage. It’s still the cheapest insurance money can buy. I also think that owning a weapon is prudent, or at least having a plan to team up with someone who has protection. Total self-sufficiency will be the order of the day, maybe for weeks or months.

    Steve

  19. Tim

    Greg,
    This was a fantastic interview. Great questions, and I especially like that you give Dr. Kotlikoff enough time between questions for him to present his information and not cut his answers short by interupting all the time.

    You are doing a great service and I thank you. I am adding your site to my favorites list today.

    Tim

    • Greg

      Thank you Tim.

  20. g. johnson

    i he woke up to the fox news this morning on my bedside radio (price one must pay for falling asleep to coast to cast am) and guess what!!

    we are in full recovery!!! yeppers , the market is back, the ecomomy is booming, happy times are here again!!

    i moved my radio slightly to the side so as not to get poked by any rapidly growing noses that may jut out of the speaker.

    unbelievable.

    oh yeah, a question for mr. kotlikoff….just exactly what the hell was your money doing in the stock market this morning before you moved it out??

    • Greg

      We have been in “recovery” since 2009. Lies and damned lies is what the MSM gives us. Thank you for the comment and reporting.

  21. HB

    Nice interview, but I’m confused: (1) how will bank collapses affect the stock market? We’ve seen that the prime effect of the Fed’s ongoing printing experiment has driven stocks to an all-time high. Will a banking collapse bring the market down, or will people put their money into the market to try to ride along with the Fed? (2) If Dr. Kotlifkoff is so worried about bank runs in the U.S., what is he doing with the money he pulled out of the market? Surely he’s not hiding it under his bed. Maybe you can follow up with some of these questions in the next interview. Thanks for all your work; enjoy listening to you from time to time on Coast to Coast and following your posts on the web.

  22. jc davis

    Greg: I am sure You have a plan for hard times. Your much smarter then most unprepared. A secret is not secret if more then one person know,s about it.

  23. jc davis

    Russia has removed the bulk of there money from Cyprus.
    http://www.reuters.com/article/2013/03/25/eurozone-cyprus-muddle-idUSL5N0CG13920130325

  24. Chip

    Great guest and interview Greg. The prof said we are printing 12 dollars of every 100 spent. How is that calculated? I thought it was 33% (3.6 T spent vs 2.4 T in reciepts)? Other than that, telling interview who speaks in facts not spin…

    • Greg

      Thank you Chip for the comments and support!

  25. Mike R

    Nice video interview. I actually got a chance to show it to my wife. She was watching some show about Japan, and saw how people were sleeping in these boxes inside of rooms they called “hotels.” of course this stuff is just now getting around to mainstream media, and they soften it up a lot. When I saw she was interested I showed her a great video about what happened in Japan since 1989. They showed all the debt build up, the zero interest rates for years, and how they are still stuck in a deflationary spiral. She was like wow, that is us ! I said no, that is our government, but it’s worse for us. Their debt is not held by foreigners, and they have been able to sustain much longer, because they were huge savers before hand. Also they have a huge surplus in terms of exports versus imports. But they still can’t print their way out. Anyhow I started showing this video, and for the first time, my wife is actually starting to believe what I tell her in very small doses about the economy. I think some of the mainstream is just now starting to “get this.”

    They all may be too little too late to get this stuff, but once it takes hold, I think that is when the situation starts to become really bad. We’ll go from a few percentage of preppers to millions of citizens doing everything possible to stop spending, and hoarding dollars. In that situation, we start seeing a deflationary spiral like what Japan has. The fed is desperately trying to avoid that and willing to risk inflation, and the propaganda campaign has gone full out to avoid spreading the message like you do here Greg.

    Everyone that comes to a site like this and wants to know when is the collapse going to happen. Well I can’t give you a date of course, but it’s when this type of stuff actually starts going viral. And when people stop whatever it is they are doing, and hear something that finally makes the lightbulb go off. It’s like marketing a product, and the hockey stick like growth curve any new start up wants to see.

    As soon as we get that “critical mass” of those folks out there like my wife, who only or primarily listen to mainstream media, that is going to be when the collapse of the dollar actually commences in earnest. I think we will see major deflation in assets like homes, college tuitions, commercial properties, and anything else that is debt leveraged. But we will see huge inflationary spikes in the day to day stuff we really need. Food, water, transportation fuel, over the counter medicines, and just about everything we import now to keep prices down here in this decade. Things we don’t really need like TV’s, most electronics, cable, expensive data plans, and anything else that can be cut from the family budget, those things will be in deflationary spiral.

    I’ve heard that Bernanke is trying to buy time. The problem is, he is racing against knowledge, and the spread of the truth. Once it goes viral, like the Psy Gangnam style video, there is just no way Bernanke can stay ahead of that. That compresses time, and out races anything Ben can possibly do.

    So choose your poison folks. Do you really want this message here to get out more quickly ? It’s a double edged sword so to speak. Sure you are feeling you are doing good by telling the truth, but if nobody is anywhere close to as prepared as we are here, it could be a real disaster.
    I’m not suggesting Greg is doing a bad thing here. Education and truth needs to get out. But how do you get the message out, without everyone saying, whoa, I need to shore my own finances big time, and both me and the government need to stop spending, and start saving a lot more.

    As they say: Be careful what you wish for !

    Best,
    mike in chicago .

  26. Ulysses

    Ah so. We can spend multi-trillions on Bush’s decade-long Iraq war, bailouts of TBTF corporations and permanent tax giveaways to the super-rich and no problems there. The entire blame, naturally, lies with Social Security which is paid for with FICA taxes of wage earners, has $2.7 trillion in its coffers and is so solvent for the next 20 years that the Treasury routinely borrows from it with T-Bonds and Medicare which is paid for by its own premiums and Medicaid (he forgot to mention food stamps) which helps the poorest of the poor.

    If our lawmakers themselves had to earn their taxpayer-paid salaries they give themselves, taxpayer-paid automatic increments, taxpayer-paid lifelong cushy pensions and taxpayer-paid lifelong government-run socialized medical care which they entitle themselves to without contributing a dime and had to rely on Social Security and Medicare like the rest of us, all the problems of Social Security and Medicare would disappear overnight and not a sqwak would be heard from Messrs. Ron Paul, Rand Paul and Paul Ryan.

    Case in point. When Ayn Rand, their intellectual goddess, contracted cancer from smoking after adamantly denying its harmful effects and then faced the larcenous medical cost of the American Health Scare system, she promptly signed up with the same Social Security and Medicare which she been decrying all her life. She was lucky indeed that Medicare had not been privatized yet.

    Which only goes to show how quickly these right-wingers can change their mind when they themselves have a skin in the game.

    What a bunch of hypocrites!

  27. Mary

    What is your thoughts on the following:
    Should we take all of our money out of the bank?
    Should we buy a few foreign currencies, that are strong in the market?
    Thanks

    • Greg

      Mary,
      I have had guests on (Peter Schiff for one) that say you should keep some money outside the banking system. After all, the banks are paying nearly nothing to keep your money. I am not a trader or speculator, but I would not speculate on currencies unless you know what you are doing and have money to lose. I would take time and buy some gold or silver coins and I would try to get U.S. coins if you live in the U.S. Get Canadian coins if you live in Canada. (Although I like both.) I do not sell coins or any other investments of any kind. Those are my thoughts.
      Greg

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